Recently there have been violent protests against the World Bank and the World Trade Organization. The protesters argue that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contend that these practices make rich countries richer and poor countries poorer. How would economists feel about these protesters' views?
A) They would disagree with the protesters because these practices will help make both rich and poor countries richer.
B) They would disagree with the protesters about free trade, but would agree with the protesters about corporate investment.
C) They would disagree with the protesters about corporate investment, but would agree with the protesters about free trade.
D) They would disagree with the protesters about free trade and corporations, but would agree that these institutions are not necessary.

Question

Quizplus · Accepted Answer

Economists generally agree that free trade and foreign investment can boost economic growth and benefit both rich and poor countries. While there may be some negative effects on specific industries or communities in the short term, the overall effects on the economy as a whole are positive. The World Bank and the World Trade Organization work to promote these practices. Therefore, economists would likely disagree with the protesters' views that these institutions make poor countries poorer.

Recently There Have Been Violent Protests Against the World Bank